39 stocks from BSE 500 index hit 52-week lows

STOCK MARKET - Markets have been on a downward spiral since August 1 when the S&P BSE Sensex ended at a record high of 32,575 levels. Since then, the index has tanked 4.2%, or around 1,381 points in past eight trading sessions.

Central Bank of India, IDBI Bank and UCO Bank from the public sector banks, Blue Dart Express, and Gati from logistics and Wockhdart, Unichem Laboratories, Marksans Pharma and Glenmark Pharmaceuticals from the pharmaceutical too hit their respective 52-week lows on Friday in intra-day trade.

Geopolitical concerns, the tension between US and North Korea continued to weigh on the markets and the trend is likely to continue in the near term.

“SEBI’s crack down on the shell companies and the ongoing tension in the Doklam region continued to have a negative impact on the markets. With global markets remaining weak the Indian markets could also continue to remain under pressure in the near term,” Angel Broking said in a note.

The foreign portfolio investors (FPIs) have pulled out net amount of Rs 1,028 crore, while domestic institutional investors (DIIs) pumped in Rs 2,876 crore in equities, according to stock exchange provisional data.

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PSBs in focus; Nifty PSU Bank index up 2%

Shares of public sector banks (PSBs) were in focus with the Nifty PSU Bank gaining over 2% on the National Stock Exchange (NSE).

Jammu & Kashmir Bank, Allahabad Bank, Bank of India, Andhra Bank and IDBI Bank were up more than 3%, while State Bank of India (SBI), Oriental Bank of Commerce, Punjab National Bank, Union Bank of India and Bank of Baroda were up 1%-3% on NSE.


At 02:41 pm; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 1.9% at 3,578 after hitting its high of 3,581 in noon deals. By comparison, Nifty 50, Nifty Bank and Nifty Private Sector Bank indices were up less than 1%.

Amid talks of consolidation gaining currency in the Indian banking space, public sector lender Dena Bank's Chairman and Managing Director (CMD) Ashwani Kumar has said the proposed move would bring about several benefits, the Business Standard report suggests.

Consolidation would also benefit banks in their capital requirements and help them better manage non-performing assets (NPAs), he added. CLICK HERE TO READ FULL REPORT.

Meanwhile, foreign portfolio investors (FPIs) and domestic mutual funds (MFs) have increased their stake in public sector banks (PSBs) in the April - June quarter (Q1FY18), on the expectation that there will be a resolution to the non-performing assets (NPAs) issue.
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